Control Premium
/ˈkɒntrəʊl ˈpriːmiəm/
Definitions
- (n.) An additional value paid by an acquiring party over the market price of a target company's shares to obtain controlling interest.
The acquiring firm offered a control premium to convince shareholders to sell their stakes.
Forms
- control premium
- control premiums
Related terms
See also
Commentary
Control premiums reflect the strategic or economic benefits of control, often negotiated in mergers and acquisitions, and may vary depending on the nature of control rights involved.
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